Systematic Savings Bank pens deal to buy Jeff City company

Springfield-based Systematic Savings Bank signed a definitive agreement to purchase another one-branch banking company in Jefferson City.

Systematic, which operates at 318 South Ave. in downtown Springfield, entered the deal with Home Savings Bank for undisclosed terms. Subject to regulatory approvals, the deal is expected to close in the last half of the year, according to an April 7 news release.

Under the terms of the deal, Home Savings Bank will take on the Systematic Savings Bank name, and Springfield will serve as headquarters for the combined company.

Based on financial results as of Dec. 31, the combined company would have assets of roughly $61.2 million, deposits of $51.1 million and loans of $41.4 million, according to the release.

Both banks are dealing with operational losses.

In 2014, Systematic posted a net loss of $265,000, on top of a net loss of $40,000 in 2013, according to Federal Deposit Insurance Corp. data. Home Savings Bank recorded a net loss of $318,000 for the year ended Dec. 31, after recording a loss of $100,000 in 2013, according to the FDIC.

Systematic top executive Michael Brady, who would remain CEO of the combined company, could not be reached for comment by deadline.

"Our respective organizations share a similar culture and approach to community banking which we believe will provide enhanced opportunities for the combined company to better serve our customers and communities and provide a rewarding experience for our employees,” Brady said in the release. “Together, we will be positioned to realize important economies of scale and be better positioned to benefit from future growth opportunities and generate enhanced financial performance."

The combined company’s board of directors would comprise six members from Systematic and three from Home Savings.[[In-content Ad]]